tv Countdown to the Closing Bell FOX Business September 6, 2013 3:00pm-4:01pm EDT
liz: good afternoon, everybody, i am liz claman. the last hour of trading. the dow and s&p still both on track for an up week. if we close around where you see me, the dallas snapped a losing streak six days in, things are looking up for the month of september so far. earlier today the dow opened up about 34 points but then took a iñ.óçy vladimir putin made remarks of the summit saying if the u.s. launched any kind of attack or strike on syria, russia will assist syria. we can only imagine wit what the two were saying to each other. the market immediately took a triple digit dive but then erase those losses in russia. families by questions about syria.
this is what you see, big recovery. a 200-point swing in the largest intraday move on the blue-chip average in three weeks. it all started this morning, a weak jobs report which caused a small rally in the free market. investors believe it added more uncertainty to the timing of the fed's decision as to when the slowdown asset purchase program also known as tapering. the weaker the number, mostly tapering sooner. maybe we will see it later. the market action as we head into the closing bell. traders on the new york stock exchange and the nymex, so weird to see the 100 plus point dropped immediately after president putin said that and see the recovery once again the market digesting that information. >> we spoke about this last week, i think. syria is trumping everything. employment numbers are
important, but the geopolitical events are clearly at the head of the class for the moment and i think that is describing the trade, and there are still so many unknowns as this is going on, it is just really tough for anybody to figure it out. up is always better than down, something for everybody today. but the bottom line is those smart people are sitting on the sidelines and will wait for the dust to settle. liz: headlines that would affect the market, but no sustainability, market recovered within an hour. >> it is macro risk versus macro numbers. they don't sustain 3.5% gdp numbers, but they really are worthwhile of a 2% number. while the geopolitical risk is outr there, we have the real
possibilities the obama request doesn't pass the house later next week. i think investors are right to be off. one last observation, the vix did not respond to well to the equities, so there's a little bit of that left. liz: there it is on the screen, hit earlier a couple days ago. saying that we will continue our sales to them, our managing editor jumped in and started looking at all of the dow components. only one at that time was the aluminum company. five are negative, this does not change anything when it comes to >ígeolwi]i!v
that has to be because of the attention in the middle east. >> the only thing people looking at is syria and what will happen there. we rallied almost $1 on that news as well. we hit two months ago, and if it does not settle in the next week or so, we could see 115 from there. liz: syria is not a member of opec, no natural resources to speak of. it is more about iran and iran's perception if the u.s. is tough on things like ñkosr/f2dwlo3çås or gassing their people. >> they are playing a high-stakes poker game at the moment. i think the ramifications if it spins out of control, it could easily spin out of7d control, as always, unintended consequences. what makes sense on paper, the reality can be entirely
different. the oil market is absolutely justified in reacting accordingly. sometimes you don't see them react, and tells me it is not nearly as bad. liz: we are minutes away from speaking live with the labor secretary of the united states of america. what would be your question to him? we got the job number for the month of august, it did not miss expectations but yesterday first-time jobless claims at five-month lows which were good signs. what should people read into them? >> the question you want to ask the secretary is if they gains in real wages are sustainable. we saw a decent upticks, that is the component piece that is critical to making sure the u.s. economy continues on pace. if you continue to see wage gains outpace spending gains and being concurrent with an uptake
in savings, that would be very healthy and suggest to us you do have a sustainable u.s. recovery. liz: up a nickel even though that will not get consumers jumping up, but we will see. thank you. we want to thank all of our traders, we appreciate you coming on. what has look good today? utility stocks. as investors search for one thing, yield. nicole petallides back. buy stocks that have good evidence? nicole: it is so interesting. people run into that. you look at sector by sector, it has performed really well today, so there is a utilities up 1.1%. the names within the group, you
talk about consolidatedsh ediso, they are doing incredibly well. we talk about the major market averages and what we're seeing on wall street, the treasury yield, 2.93% is how it relates to equity. as it gets closer to closer to the highestld level, you will se people back off of the equitiesj as it comes back down,ám.kty pee get little more confident and get backç in. utilities group has been a safe haven. liz: well off of the 3.1 moment, even though it is still historically rather low. thank you very much. down five basis points from the earlier number.qlet's get back s report, the number of jobs in august miss pretty modest
expectations, 169,000 jobs actually added to the economy but desiccation was to see a risec of 180,000. i number and how do we get more businesses to hire more people? joining me now, thomas perez, welcome to "countdown to the closing bell." >> pleasure to be here with;ñk . liz: there are 50 directions we couldñ go.yv yes, there was a miss by about 5000 which in and of itself is ñ became more remarkable was a downward revisions for july and june. not as much as initially thought created. what should americans think of these numbers? >> once again we&b have 42 consecutive months private-sector job growth to the tune of 7.5 million jobs, 2.3 million in the last year alone, the economy continued to
grow at a steady pace. as itm@ñrñr relates to the revis ÷( zr] notable the majority of those downward revisions are in state and local governments in particular schoolteachers. while the economy has grown over the last 42 months, that is a private-sector economy which has been driving the recovery. we lost 5000 government jobs and let's drill down on that.úhnu what are the jobs that have been lost? schoolteachers, police officers, firefighters. those are the jobs that have been lost. what they are seeing his class sizes going up, less teachers, less teachers aides2& and i have been unaware of any recovery in which you have had no government growth.
liz: the fact businesses won't create jobs, government should create jobs but you have conservatives who have said the loaded government needed to sliñ 3 down. it is. we saw the unemployment rate ticked down. but part of the reason the rates are fine is because the labor force dropped, the theory being it is a possible sign of discourage dropping out of the hunt and yet critics want the number lowered. how do you see that? >> the unemployment rate should undeniably be lower. self-inflicted wounds of the sequester and what i just described in state and local government if the unemployment rate, if we had remained flat in the government sector kept the teachers and firefighters and police officers, our unemployment rate would be below 7%.
the other thing about labor force participation, we keep a number of different statistics at the department of labor and there are other indicators of unemployment that take into account discouraged workers, take into account workers who are barely attached to the market and you look at the trends in those areas, my economist friends call it the u5 and u6. trending down over the past year. liz: we had a money expert on with billions under asset management, one thing he was looking at was u6 which says the number of people working part-time due simply to the economy. inferring how the economy looks, let's be fair and balanced, the market is up unbelievably strongly over the past year we had today the market likes the
number. what does the number t today say and will we see in august revision like we saw with the july revision? >> again, what we see is what we discussed earlier. the economy continues to grow at a slow and steady clip.wvofi 32 consecutive months of steady job growth.çó you look at auto sales and using the largest auto sales since the end of 2007. you look at the retail sector, the hospitality sector, people are goings out to eat more, people are going on vacation=b? more bullish about the future. we have to pick up the pace. the better bargain for the middle class is so0ç critically
liz: let's hope congress gets a move on with immigration. we appreciate you coming on. >> it was a pleasure to be here. liz: the closing bell ringing in 45 minutes. what does today's job report mean for the fed and the tapering from the perspective of the markets? we have an all-star panel next, a fox this is exclusive with former vice chair alan blinder as well as speed nine. now you hear from the guy to deal with the money in the market. a fox business exclusive.
liz: yes, the august payroll number missed expectations by 11,000, but the unemployment rate to fall. edging closer to the fed tapering threshold. forget the fact that a large part of the reason it fell is because people were discouraged and simply left the search. so will they begin this month? joining me now, senior u.s. economist. alan blinder, former vice chair of the federal reserve.
we should mention, as to georgia of the kansas city fed came out and put a number of what she felt the tapering should the plight. we should it squeezed back a little bit by about $15 billion. what he think. >> that is about the number. that is about the number that i think they will start with, 15, 20, something like that. the question is, will they start and a few days and not. that kind of number is enough to make a difference, but not to the, not to start covering the economy. liz: to you think it will happen? >> yeah. it won't happen in three days. i would handicap it has slightly over 50 percent
anemic pace. government jobs have slowed. they started such turned more and more. the thing that's negative for positive? >> first of all, it's medically and negative. if you pretend they have nothing to do with each other. to escape that, you have to thank him and killing one government job ads more than one private-sector job, which is a will with a look of things. liz: when people say we have to slim down this government, it looks like were bloated. >> you have to be careful. you could always focus on a given sector. it's too large. that was actually one of the areas, one of the spots the reaction the did have some government jobs. most of those were concentrated on local education.
that might have been attributable to the fact they have serving. there was encouraging. you have to focus on a private sector. to be fair, even though the jobs number this morning, the brouhaha coop over the three months was actually up. that's the leading indicatornot. liz: we of spoken to such a great extent to know what tapering would do the stock market. the fact is, because they've talked about it so much, no one can possibly be surprised. the head of the federal reserve. he has said he will send step down. so much discussion about larry summers being the guy. today, front page of the journal saying that he cannot get approved. he would not get close -- folks.
is he approval? if worked with the of the possibility over of the fed. >> yes, i work with of three. >> that does not give me an answer to your question. it's about the behavior of the united states congress. everybody recognizes that summer's poses a potential confirmation danger. i don't think the other has won an emmy in the laurel. and she is not nearly as controversial when. it's a sham like a baseball game one. i don't think it's over. liz: you have my vote. i have been championing human.
i think you would be terrific. >> probably, but i think gun running in last place. liz: there are a few others. liz: that's my team. thanks to both of you. former federal reserve vice chairman and senior economist. thank you both. the closing bell ringing and 35 minutes. talk about a huge gamble. a live to the cme and chicago to tell you about an astonishing but that could net one trader a staggering $27 million. it has to pay off.
>> somewhat easy to understand. it is like playing the lottery. an individual trader who puts $50,000 towards a bet. i bet that the fear index will jump above 27. we have not seen these levels since 2011. if that does happen, obviously a long shot he would be in for about $27 million. we brought in mike williams to tell us what that deal is. to take away. >> well, you can pick one of these all the time. >> like an apple stock. >> if there was an option available it would be worth a fortune if it actually happened. you would be rich. it's the same thing. people need to understand that the odds of it actually unfold in are minimal.
>> diskette to a $20,000 on a bet. to you think that is realistic. >> if the market collapses in the next day dazing goes down, the fix will rise. >> i wonder, the market environment. a lot of expected volatility, a lot of uncertainty. unwilling to the $50,000 on the table. bin. >> it's like a red or black in vegas. does not investing. this is betting. that can happen. >> has now what a guy like you does. >> that's not what anyone like me desk. the equivalent is in my bed 50,075 times and maybe it works once. >> it's more like rolling the dice. that's not really smart investing. liz: let's just check. a long way to go before they get
there. they have 28, 23. >> over 27. liz: all right. maybe that is why they are who they are. they take these kinds of chances. we will once that closely. thank you. the closing bell ringing in 28 minutes. can you say we're going public in 140 characters or less? investors have been waiting for twitter to make that kind of announcement of its ipo, but the tech company has been silent. until now. charlie gasparino has been anything but silent. out in front of the story and has the exclusive after the break. um... where's mrs. davis?
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♪ liz: we are just looking at shares of both yield and facebook, both hitting record highs. let's get an accord reached -- nicole on the floor. >> what an exciting day for some of these names. let's start out with yelp, a new all-time high. an unbelievable performer year today, but you have both deutsche bank and barclays speaking positively saying the stock is an overweight. deutsche bank as said by with and 81 billion. well-positioned to capitalize on the mobile area. also in local markets. then there is facebook. it moved around a lot in the last 20 minutes or so, recouping some of the losses. approaching the $45 mark. you remember last may when we had the ipo, $38 at ipo debacle.
at that point during the dated $45. it is not seen it since that date, the 18th. it is interesting to see whether it will cross that market. suntrust robinson put a $55 target up from $40 maintaining their buy rating. also just talking about the fact that revenue looks good, new product launches, video let's, that was part of it that what -- as well. a lot to say about revenue growth potential over the next few years for facebook. liz: how about that. a very exciting. more time wasters. just kidding. you know how i feel. we a busy. a little birdie may finally be providing some details about a much anticipated tech company ipo. fox business senior correspondent charlie gasparino
here with the exclusive. may i hold this up please? what does this mean? >> well, we have been on the case of the twitter ipo -- i think we were the first network to say there were going to do it possibly in 2014, reporting that all of the firms are now gearing up to be the underwriters. first to report that both the nasdaq in new york stock exchange and trying to win the listing. we tried to get a response. twitter is notorious for not responding. so one of our wonderful associates here, you know, did some great reporting. she e-mail the spokeswoman and said this, will anyone be able to chat with me about ipo rumors. and it had reached -- the response. now, i will say -- liz: what does that mean? >> to meet means stay tuned. i should point out that we do
have the story on foxbusiness.com. you can go there. i did an unofficial twitter survey. most people say it means they are confirming it. and i looked up. liz: confirmation. sort of a to beach to -- continued. >> this sounds like a confirmation to me. we should point out that we have called up twitter to get more clarification on this obviously. they have not gotten back to us, but most people i talk to, when they see that, it's like, listen, according to the urban dictionary -- either to this up. [laughter] liz: you are so hip. >> i'm so cool and just a great reporter anyway. liz: what does it say? >> your purposefully leaving stuff out because you don't want to say something. the look of the exact definition . liz: in on the nile is a confirmation the way you see it.
>> i usually tell people, if you don't deny it we will put it as you're not denying it. i will tell you, that's what it means. that's what i'm taking away. ladies and gentlemen out there will decide for themselves, but i think -- what is great about this is that they don't generally respond with anything. they don't even call you back. liz: you have to tweak him. >> they don't even respond to that. the one time they got back to us it was with this cryptic non denial denial. which means more to come. right? i'm leaving stuff out. liz: he's like right.okay. yes we are going public. >> i think that. this is what we think. the hard news reporting on this story we just got through. what do you think? liz: i think they could announce this year. >> what do you think that response means? liz: we are not answering right now because it is going to come out sen. we are on it.
>> we are going to do it. liz: you are schering as. >> and we're going to do it. liz: so, they are doing it. >> yes, that is what that means. liz: we have decided. who is going to get the underwriting business? >> i think morgan stanley. liz: you also said he is friends with some of the founders. >> here is what i think. morgan stanley makes the most compelling case. i think he did a pretty good job. you know, they have a firm that now deals with 18,000 financial advisers. 18,000, millions of small investors, the biggest brokerage firm. they could make a compelling plant -- compelling case that we can place your ipo in good hands. liz: nasdaq or nyse? >> that's interesting. here is the thing. he has his work cut out for him. the head of the nasdaq.
given what went down. we reported this in a story on foxbusiness.com. think we came on your show was well about the big battle between the nasdaq and the nyse over tech listings. the facebook debacle, when the system went down on the facebook ipo, that had a real impact. i was surprised. that had an impact a tech companies. you see a lot of them going because they're afraid of nasdaq issues. think this sort of compounds that. bob was going to have to make the case. in the can. it's just a time. we are all on computers. none of us a perfect. if you're going to judge us on perfection, their plenty. liz: i had something. the title was those who live in glass houses should not throw lose sales.
everyone has technical difficulties. but the facebook issue is more damaging. >> i think yes. from a business standpoint, at least so far, based upon our reporting, a lot of tech firms decided facebook. as was going to go on. but for example, if we did not have the flash freeze it may have been a memory about the other one because people are starting to forget. facebook shares are up. liz: hitting highs. >> this brings back all of that. liz: thank you. >> what do you think of this in-depth reporting. liz: tell us what you think. >> when they call up and say is charlie gasparino getting fired from fox business. liz: i would save this for that moment. you're never leaving yes. closing bell ringing in 15 minutes. today might not be the last day this month we see a 200 points wing.
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♪ liz: well, you can blame the russian president. and just kidding. we are enduring a 200 points when today. adelle earlier recovered from a 140 plus point loss after comments from russian president at the g20 summit in essen saying that if the u.s. attacks or make some type of strike against syria we will help syria we were able to recover from that, but you see that the dow is flat. the other indexes are holding on to some gains year. the summit, as you know,
200-point swing. as we look at the markets ahead volatility, can you use it to your advantage? joining us now, chief investment officer. you have about six and half billion in assets under management. how you feel about the markets right now and investing in equities? bullish or bearish? >> we are definitely bullish. what we said earlier in this summer is a big difference in the second half bursas the first half, a return to volatility simply based on all of the uncertainty that started with fed tapering and win and who will be the next fed chairman. now you throws syria and the middle east on top of that. we have the debt ceiling, the budget negotiations. all of this means balata -- volatility. investors should take advantage, just as they did today. triple digit sell-offs. come in and buy and take advantage. that is why we think sell-offs
will be short-lived going forward. liz: and the twitter comment. can we eliminate this? the comment about going public next year. let's get to the fact that -- and i love the you are bullish in spite of these issues because if you rewound the tape from back to a year, we were facing cypress, all kinds of concerns about europe. sure enough things look good. we had people say there would be volatility. but we know that not every sector performs well. what areas? how do you pick the areas they believe investors should be in right now? >> first of all, we believe in diversification. what we have done in our portfolios is have a balance between your traditional defenses steady eddies the will hold up in periods of uncertainty, particularly in a slow-growth environment. those are traditionally your pharmaceutical sectors, york consumer staples.
so big, solid, high-quality names like coca-cola, johnson and johnson or novartis in health care and farm out. but also have some of the more cyclical exposure that you did in industrials, basic material, even technology. there is some wonderful opportunities there today. companies like an ibm that have not participated that much this year or really year-over-year that after -- offer tremendous value. liz: a aside from ibm you like novartis. you mentioned pharmaceuticals. there is an area that is a real opportunity. they have an opportunity to see the company very involved in global performance. and it has performed beautifully. we also have johnson and johnson which is domestic base, but huge global footprint. coca-cola. why this man?
>> well, a company that really has not done all of that much in terms of its stock price this year. and it is kind of turned it in the high 30's area. yet it is a wonderful emerging marketplace. it is also a financial engineering play with the bottlers. so we like this company in here. it is one of the classic defensive names that we think will hold of in any economic environment. liz: folks, this gentleman, six billion-plus in assets. now comes his number one moneymaker, the name that you feel has just got to be in the portfolio. what is it? >> well, we just recently added teach amax in the retail. a lot of the soft retail and department stores have had
disappointing earnings. not t.j. max. they have a formula that really works, that appeals to our inner consumers and, if you will. i believe we have a dna program that says by. shoppers love t.j. max. the bargains that they bring to the table. so whether the economy is expanding or contracting, it is a good area. liz: i have heard it described as a treasure hunt retailer. thank you very much. we appreciate you coming on. >> right. liz: hank is from haverford, of course. closing bell is just five minutes away from the weekend and from this closing bell. guess what i'm doing? backing for our annual three days in the valley. silicon valley. bringing some fox business people long for the right. hitting the road for a huge week of technology news. i will be spending three days in
silicon valley interviewing the tech industries bigger movers and shakers. robert gray heading up north. apple headquarters in cupertino, california. adam will get off on his flight in round rock texas to adelle headquarters for a maker break meeting on the future. starting tuesday three days in the valley live at the intel developers' conference in san francisco with a mega exclusive. it is his first major network interview. i'm talking with intel ceo about his plan to grow the world's largest semiconductor company. ♪ [ male announcer ] how do you get your boce? i'm, like, totally not down with change. but i had to change to bounce dryer bars. one bar freshens more loads than these two bottles.
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headquarters of apple, the less expensive iphone will begin shipping to china. china mobile will finally have a deal with apple according to "the wall street journal." the china mobile deal would cap years of negotiations to make this happen. once again, apple is expected to unveil a less expensive iphone on tuesday. fox business will be right there, david asman, at the headquarters. david: meanwhile we're looking what is happening with this wild market. what a wild day it has been. the market isdown 16 points. it is coming back to the positive. started with job numbers figuring the fed would less likely taper. then it went way down 140 points. let's go to nicole petallides at the new york stock exchange. we were hoping it would stay there but if anybody had any doubt f of the market, than foreign news, today is the day it would dispel that rumor. >> absolutely. we had a big move today. a wild day on wall street.
almost a 200 point swing. [closing bell ringing] obama, syria, job numbers. david: korn/ferry is one stock that is way up, up over 10% today. we have the ceo coming up right here. liz: talking about executive shifts and hiring, so much more from korn/ferry in just a minute but as the bells ring on wall street, this number on the board for the dow zones industrials doesn't come close to explaining what happening today, a more than 200-point swing, back, forth, up, down, all the way around. we're settling back down 15 pints. we got a jobs number while disappointing, didn't disappoint the markets. vladmir putin made remarks about syria. that caused markets to fall. david: we haven't even begun about the fed and its involvement, what happened today. look at front page headlines of what went on. the possibility that president obama may order strikes on syria continues to weigh on investors today. conc